Tag Archives: Telok Blangah Green

Tender to lease out historic property which has been vacant for 6 years

After being left vacant for about six years, the former Alkaff Mansion on Telok Blangah Hill may spring to life again.

Waiting for new business: The two-storey property has conservation status and SLA will issue an initial tenancy term of three years

Singapore Land Authority (SLA) has launched a tender to lease out the property, which has conservation status, for the following uses – food & beverage/ restaurant, art gallery, wellness/spa facilities and museum. The guide rent is $28,100 per month and SLA will issue an initial tenancy term of three years, renewable for a further two terms of three years each.

The two-storey property is said to have been left vacant since former tenant Hotel Properties Ltd returned it to Singapore Tourism Board (STB) in 2004, when its 15-year lease expired.

The property has a land area of 96,699 sq ft and a gross floor area of 13,142 sq ft. An outdoor refreshment area (up to 969 sq ft) may be allowed subject to evaluation.

In its heyday, Alkaff Mansion was the venue for grand weddings and even a Ricky Martin concert in 1999. An Indonesian buffet used to be served on the first level, ala carte on the second level and a bar on the verandah. However, the eatery’s fortunes are said to have dwindled since 2001 when the economy tanked. Just months after the 2003 Sars outbreak, restaurant operations at Alkaff Mansion quietly ceased operations.

This time round, market watchers are more optimistic.

For one thing, the location has become more attractive. DTZ executive director (consulting) Ong Choon Fah says: ‘Previously, the location was isolated, out of the way. But now with the development of the HarbourFront area including Vivocity, as well as the integrated resort at Sentosa, Alkaff Mansion’s location is part of a bigger precinct with more buzz.’

A concept-driven F&B outlet and an events/ corporate meetings venue would be ideal for the property, suggests Mrs Ong.

Ronald Tan, a veteran leisure industry consultant, suggests a high-end food and thematic entertainment venue, particularly offering Middle Eastern or North Indian cuisine. ‘There’s a dearth of upmarket halal restaurants right now in Singapore,’ he notes. He feels that a revamped Alkaff Mansion could cater to high-end visitors. In the past, he says, the property was not air-conditioned and there was no covered walkway leading to the car park.

STB returned the property to the state in March last year. Since Alkaff Mansion was listed on SLA’s State Property and Information Online (SPIO) portal six months ago, it has received more than 50 enquiries, according to SLA.

The tender closes at 11 am on April 6. Bids will be evaluated on tender price, concept and proposed uses, among other factors.

Real estate lecturer Nicholas Mak suggests that SLA could share the risks with the successful bidder. ‘Instead of selecting the bidder that offers the highest rent, SLA should choose the operator with the best concept or product. In the first one to three years, SLA can offer a discounted rent. After the business has established a brand name in the market and has loyal customers, SLA could share the rewards by pegging the rent as a percentage of the operator’s income.’

The property was built in the 1920s by Yemeni businessman Syed Abdul Rahman Alkaff as a family retreat named Mount Washington. It was the venue of opulent parties, which the family hosted for top local and international businessmen, celebrities and dignitaries, according to earlier media reports. The house was abandoned by the family by the 1960s.

Source : Business Times – 17 Mar 2010

Vacant since 2003, it can be an F&B outlet or spa, among other uses

The SLA’s guide rent for the former Alkaff Mansion is $28,100. — ST PHOTO: DESMOND LIM

THE former Alkaff Mansion, a majestic conserved building perched on top of Telok Blangah Hill Park, has been put up for lease by tender.

Once a popular wedding venue, the property has been vacant since late 2003 but is now being made available for various uses, including a food and beverage outlet, an art gallery, a wellness or spa facility, or a museum.

The Singapore Land Authority (SLA), which launched the tender yesterday, said it has received inquiries from individuals and businesses keen to use the property. Its guide rent is $28,100 a month.

Yemeni businessman Syed Abdul Rahman Alkaff built the property as a family retreat in the 1920s.

It made the news in 1990 when it was turned into a dining and entertainment hub after a $5 million makeover. It was given conservation status in 2005.

A new lease of life awaits following earlier suggestions, including turning it into a one-stop bridal service destination, a hotel or a club for companies to hold meetings.

Dr Kevin Tan, president of the Singapore Heritage Society, had reportedly said the building could be turned into a heritage centre for the Telok Blangah area, especially as it was the traditional stronghold of the former Temenggong of Singapore and his family.

The property has views of Sentosa island and the sea but it lacks a critical mass of buildings or space to attract customers of different tastes, said Ngee Ann Polytechnic real estate lecturer Nicholas Mak.

It is a ‘destination place’ and cannot rely on casual walk-in customers.

‘Furthermore, any business on this site needs a significant amount of marketing to create and maintain awareness among the customers,’ he said. ‘It is expensive for a single business to shoulder the entire marketing bill for a restaurant on this site.’

Mr Mak believes these factors will mean the tender’s take-up rate could be low. ‘Since the previous operator had failed to operate it successfully as a restaurant, it could deter other similar operators from bidding,’ he said.

Businessman Ong Beng Seng’s Hotel Properties leased the property for 15 years from 1990 from Singapore Tourism Board, which returned it to the SLA last year.

Times were good in the 1990s, but business was hit in 2001 when the economy dipped and then the Sars outbreak came in 2003, forcing it to close that year.

The building has a land area of 8,984 sq m and an approximate gross floor area of 1,220 sq m.

The SLA, which will host a site show-around next Wednesday, said the tender is for a tenancy with an initial term of three years and renewable for another two terms of three years each. The tender closes on April 6.

Other key state buildings awaiting a similar rebirth include the Queenstown Remand Prison and Old Kallang Airport.

Source : Straits Times – 17 Mar 2010